Cheung Kong reports first-half profit dip


Li's flagship company posted property results that showed firm growth but earnings from Hutch were down significantly

By Alex Frew McMillan

HONG KONG, China (CNN) -- Hong Kong tycoon Li Ka-shing's flagship company, Cheung Kong Holdings, reported a slump in profits Thursday, down 6.9 percent for the first half of 2002.

Cheung Kong made HK$3.92 billion ($502.6 million) for the six months through June -- a significant drop on previous earnings, but nonetheless outdoing forecasts.

Total property revenues were up 20 percent to HK$3.18 billion, while operating profit -- which many investors track as a sign of things to come -- was up 49 percent, mainly thanks to strong development in its home market, Hong Kong.

Cheung Kong gets most of its profit from its stake in ports-and-telecom affiliate Hutchison Whampoa, however.

Hutch came in with net profit of HK$5.95 billion ($762.8 million), down 17.2 percent over the same time last year. (Full story)

Cheung Kong stock ends flat

Both companies reported their earnings after the end of trade in Hong Kong. Cheung Kong closed flat Thursday at HK$58.25.

Hutchison Whampoa fell 0.45 percent to HK$55.50, holding back the Hang Seng for much of the day.

The index struggled into the black at the close, ending up 0.21 percent at 10,424.00. (Asia roundup)

Cheung Kong said earlier in August that it would match the price of government-subsidized housing with some of its new developments.

The announcement sparked fears of a price war in Hong Kong's beleaguered property market.